A recent state environmental report narrows the estimated cost for remediation at the vacant Powdrell & Alexander Mill property.

In its Phase III findings concerning the mill at 42 Maple St., the state Department of Economic and Community Development recommends taking cleanup action on 10 of the 13 identified Areas of Concern, or AOCs, at the 4-acre site. The state estimates that scrubbing those areas would cost between $585,000 and $990,000 — significantly less than previous estimates, which topped out at $2.5 million.

Killingly Economic Development Coordinator Elsie Bisset said the report is crucial to attracting potential developers.

“I’ve gotten a few calls since the report came out in late May,” she said. “It’s something they need as part of developing a financing package.”

But there is one stumbling block to getting a developer to make those state-sanctioned repairs — the mill already has an owner.

The mill was sold more three years ago for $350,000 to partners Trevor Bristow, of the Lodestone Development Group, and Benny Gonzalez and Marta Jablonka, of Queens Village, N.Y. Since the purchase, town officials have only had “incomplete” contact with the owners, said Town Manager Bruce Benway.

As of the end of May, the owners have racked up more than $36,600 in town and borough back taxes. In addition, they are liable to fencing and demolition costs the town incurred while attempting to keep the property safe — according to state law, the town is responsible for ensuring the mill does not pose a public safety hazard. The town spent another $27,000 for the recently received state remediation report.

Bisset said the best-case scenario would be the sale of the mill by the current owners to another developer.

“But with the back taxes and other costs, any new developer would be starting $75,000 in the hole,” she said.

If the town seizes the property for nonpayment of back taxes, that presents another headache, as any demolition or repair costs would be on the town’s dime.

Despite its appearance — broken windows and a partially collapsed side shed — Benway said the property is salvageable.

“It does remain somewhat viable for rehabilitation,” he said. “If it ever gets to the point where imminent danger is a concern, I could see the town, theoretically, closing on the lien and selling that lien.”

Benway said the town’s building official keeps “regular and routine” tabs on the four-story building’s condition.